All Forum Posts by: Mike Paolucci

Quote from @Rafael Ramos:

Hey everyone,

I'm looking for some guidance on investing in real estate before the year wraps up. I'm based in the Tampa area, and my business operates in South Florida. I've been exploring options for a multifamily property, single-family homes, and even a luxury condo that could work as an Airbnb.

My primary goal is to find an investment that has good potential for profit and tax benefits for this year. I’d rather avoid anything that could become a headache down the line, even if it means a higher initial cost. I have liquid funds ready, but I want to make sure this is worth my time compared to the 5-6% cap rates I've seen on multifamily units in South Florida, which are close to what I already get from CDs and high-yield savings accounts without the hassle of property management.

I'm also hesitant to invest out of state since I'm new to real estate and don’t want to make a costly mistake. I’m here to connect and get some honest insights—not just a sales pitch—so if anyone has tips on properties or areas with good potential for appreciation and tax advantages, please let me know!

Thanks in advance for your advice and recommendations!

 I would start with local meet ups / networking events to help you scope out what locals are finding success in. Most investors at these events are helpful and good people to get to know and develop a relationship with. 

If you can find something to invest locally in and makes sense, do it (house hacking / MTR / Long term rental). 

Quote from @Tucker Mason:

For those managing rentals out of state, how do you ensure everything runs smoothly? Do you rely on local property managers, or do you have your own systems in place for things like maintenance, tenant communication, and rent collection? I'd love to hear about your experiences—what works, what doesn't, and any tips for making remote property management easier.

Most of my clients, including myself when I was an OOS investor, employ a local property manager who already has relationships with vendors / contractors to help you. They'll typically handle everything from leasing to maintenance to evictions which will allow you to devote more of your time to building capital and continue investing. It's not a set it and forget it thing but a good PM will definitely shoulder most of the burden for you. It can be exhausting trying to keep up with all the changes in local ordinances, section 8 (if you employ this strategy) or things that need to happen quickly (code enforcement / vacancies). 

Happy to answer any additional questions. 

Quote from @Chris Lane:

I've been lurking a bit and messaged a few people, but I figured it is time to make a post.

I'm a new member, looking to start my REI journey. Getting started a little later in life than some, but that's ok. I have an IT career, but like some others, I'm looking at economics these days and realizing that I need to make a change to get to where I want to be. 

To answer your question - yes, it's worth networking in your local markets. Ask plenty of questions because most of the information should be applicable to investing anywhere outside of the local ordinances and laws. I would also recommend connecting with realtors / investors / property managers in the markets you're looking to target to help you understand the markets better + doing your own research on the side. 

I started off as an OOS investor back in 2021. Happy to answer some questions and share some experiences as an OOS investor. 

Quote from @Oli C.:

Hey BP friends,

I was wondering if anyone has experience with MTR out of state? Particularly in the Cleveland/Columbus area. I would love to hear your thoughts on such a strategy, what to look out for?  as an out-of-state investor (First investment property).

Thank you!

I would recommend having a property manager who does MTR's since you're out of state. They'll have the contractors, handymen, stagers to help you succeed. I have a MTR on the Southside of Columbus near Nationwide Children's Hospital and use a local PM to manage it. 

Make sure you're targeting the right neighborhoods to invest in as well. I'd recommend Olde Towne East / Southern Orchards / Grandview / Fifth By Northwest and a few others. 

Happy to answer any questions you might have. 

Quote from @Frankie Paterno:

Good Morning,

What areas are still cashflowing and I can scoop up and hold? Is Ohio/Indiana/arkansas over-saturated now? Looking to network with realtors and investors in the game! Cash ready. 

Can't speak much about Indiana / Arkansas. Depending on what market you choose in Ohio, yes, you can find some cash flowing properties. 

I found a 3bd/1ba single family near Dayton for $70k last week. Good for both LTR and section 8 rentals depending on what strategy you're looking to employ. 

Quote from @Nick Thanaet:

I've been studying real estate investing the past 3+ years but never took any action. After a recent wake-up call I realized I had the classic "paralysis by analysis" and am looking for some help in taking that first step. For some brief context on myself, I've always had a passion for investing, which led me to getting a BS in finance and a job in financial planning. I started with stocks & derivatives trading, but eventually realized that real estate is much more scalable and offers long-term financial freedom.

Hey Nick. I'm originally from San Francisco, CA and went down the same path as you back in 2021. I ended up finding a single family in Oh via Zillow for just under $110k, ran my numbers and pulled the trigger. With the help of my realtor, I locked it up and was off to the races from there.

Happy to share more of my experiences from when I was an out of state investor if you're interested. Good luck with your journey! 

Quote from @Bacongo Sandou Cisse:

Hello everyone,

I am from the Bay Area and looking to relocate to a area where I can start my investing journey. Right now, California would be impossible for me so I am looking into areas where their is a lot of opportunties. Open to any state as long as I can make money and grow.

Hey Bacongo. I'm originally from San Francisco. As other's above have mentioned, Midwest wouldn't be a bad idea. I moved here in 2022 and haven't been too disappointed so far. Happy to connect and share some insights into Ohio. 

Quote from @William Silva:

Hello BP Community,

I've managed to save up around $90,000 to invest in my first rental property. I live in Miami, FL and don't want to buy here since prices are incredibly high.

Welcome William. I started off in a similar position in 2021 as an out of state investor from CA. I ultimately chose to focus on Ohio and ended up moving here to focus on investing. 

For a first time OOS investor, I'd suggest buying a single-family or duplex LTR to make sure whatever market you choose is a good fit. I'd also target markets with good population growth & economic drivers that are helping the market progress. 

Happy to connect and share some of my out of state experiences / tips. Good luck on choosing a market and on your investing journey. 

Hey Tanner. Congrats on taking the first steps and asking the right questions. I started off as an out of state investor myself and would be happy to share some experiences & tips. 

I'd agree with Min, turnkey single family for your first investment is a solid way to start. Less financial risk and less wear & tear on the property while you figure out if OOS REI is right for you.

Step 1 - figure out your target asset class & then your target market. 

Biggest key is to make sure you have the right teams in place and boots on the ground to help you manage / inspect / repair the property. Get good at running your numbers and don't get stuck in analysis paralysis. Once you have a solid base, then start exploring other investment strategies. REI is a marathon, not a sprint.

Hey Nick, glad to see another bay area investor jumping in. I'm originally from San Francisco. Happy to connect and share some experiences & be a resource.